Size of company's Yakutat gold mine claim questioned

A massive gold mining claim near Yakutat by an out-of-state company has proven to be not only controversial but also questionable in its legitimacy, according to officials. Officials see gold potential as overstated, and the Native opposition is growing.

34.8 million ounces of gold highly unlikely, mining experts say

A massive gold mining claim near Yakutat by an out-of-state company has proven to be not only controversial but also questionable in its legitimacy, according to officials.

Oklahoma City-based Geohedral LLC announced in September that it had staked hundreds of mining claims in the forelands around Yakutat and estimates the claims possess around 34.8 million ounces of gold, potentially worth billions of dollars. The proposed area covers more than 60,000 acres and would require a placer mining operation because of the geologic makeup of the forelands, which makes the volume of gold somewhat suspect, experts say.

"In the entire history of the state of Alaska, there has only been about 24 million ounces of gold produced from placer deposits," said John Kato, Alaska geologist for the U.S. Forest Service. "So it's a bit of a leap of the imagination to assume that there might be 34 million (ounces) ... out on the flats there in Yakutat."
There is no doubt that there is gold in the area, but the amount Geohedral has claimed is unlikely, Kato said. Besides, the cost of extracting the gold would likely far outweigh the financial gains, he added.

Several messages left with Geohedral this week were not returned.

The mining proposal has grown controversial because some of the claims are on sacred Native sites and surround the complex river systems that have been the economic engine of the community for generations. The rivers, particularly the Situk and Alsek, support world-class fisheries used by commercial, sport and subsistence anglers.

Several Native organizations have voiced concern about the potential environmental impacts any mining would have on the complicated ecosystem of the area, particularly its salmon. On Tuesday night the Yakutat Tlingit Tribe passed a resolution discouraging any exploration or mining activities in the forelands that could negatively impact the "traditional hunting, fishing, resource, historical sites and resting grounds of our ancestors."

Read the complete story at the Juneau Empire.